Borrowers have lots of choices among types of loans and lenders.
Choosing wisely can save you a lot of money. Protect yourself
from paying more for credit than you need to by understanding the
different types of loans and lenders. Remember, if you borrow
money that you cannot repay, you can lose your home, your car,
your savings and your investments. Also, a court can order that
your employer “garnish” your earnings, that is, withhold some of
your pay on behalf of a creditor.
For some loans, called “secure loans,” you must put up
“collateral” – something you own that the lender can take if you
don’t repay the loan. Cars, homes and savings and investment
accounts are common types of collateral. “Unsecured” loan, like
credit cards, do not require collateral.